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Presently there are a considerable number of subdivision projects either underway or that have been completed in and around Zimbabwe.
In most instances where sub divisions occur, property owners would have realised that there is a sizable portion of their land that is underutilised, and as a result, unlocking value of the same becomes not only practical but financially prudent.
Underutilisation of portions of land is not the only factor behind a land owner’s decision to subdivide their property; the same exercise can be carried out to donate or bequeath a portion of the property to family members especially where the land in question is quite sizable. Lately, another popular reason for embarking on the subdivision of land is to establish affordable housing initiatives by creating low cost cluster homes in apartment complexes or gated communities.
Be that as it may, it is important for land owners and any party who intends to benefit from the subdivision exercise to be cognisant of the legal framework and regulations surrounding the subdivision of land.
Because subdividing land in Zimbabwe is a regulated process, careful attention to legal procedures, financial commitments and infrastructure development is key in order to ensure the success of a subdivision project as is securing the proper permits and meeting all the conditions set by the local authorities.
It is mandatory for a landowner intending to dispose of a portion of their land by way of subdivision to obtain a subdivision permit; as without it, any agreements to transfer the subdivided portion will be of no legal consequence and unenforceable.
In order to obtain a subdivision permit, the landowner must submit an application letter, completed application form, certified title deeds, proposed diagrams and rate clearance, together with any written consents from bondholder and/or other rights holders in and over the property.
The landowner will also need to factor in their financial obligations to settlement of all the endowment contributions; namely settling aside of land for public use, infrastructure development costs (roads, sewers, water reticulation), professional fees for surveyors and lawyers, just to name a few.
Furthermore, it is the prerogative of the landowner to adhere to the conditions set out by the local authority which may require the installation of all or some of the following: storm water drains, internal roads, culverts, sewer lines all of which must be constructed to the local authorities’ standards.
It is important to note that a subdivision permit does not authorise a landowner/developer to build structures; a separate development permit will need to be obtained by the landowner/developer in order for the building of structures to commence.
Additionally, the landowner, at their cost, will need to consult with the Environmental Management Agent and Zimbabwe Electricity Transmission and Distribution Company as part of the review process of the subdivision exercise. The review process may involve a public notice period should it be ascertained that intention for the subdivision conflicts with the conditions set out in the title deed of the property or those from the surrounding areas.
Once approvals have been given by the relevant local authorities, the subdivision permit will be issued specifying the conditions that must be met by the landowner. In most instances, these will include but may not be exclusive of the endowment payment and the infrastructure development obligations.
After the issuance of the permit the landowner must ensure that they submit the final survey diagrams to the Surveyor-General (within a 12-month period) and register the new title with the Registrar of Deeds within 6 months following the approval of the survey. Missing these deadlines could result in the subdivision permit being revoked.
In our next instalment we shall discuss the critical pitfalls to avoid when subdividing a piece of land.
It is advisable to seek professional advice prior to taking on projects of this nature in order to avoid any financial implications associated which can be quite crippling.
